Morrison & Foerster represented subsidiaries of Ping An Insurance (Group) Company of China Ltd. (“Ping An Group,” Stock Code: HKEx:2318; SSE:601318) in their capital and strategic alliance with Shionogi & Co., Ltd. (“Shionogi,” Stock Code: TYO:4507).
The capital alliance involves a subscription of a 2.05% voting stake in Shionogi by Ping An Life Insurance Company of China, Ltd. for JPY33.5 billion (approximately US$311 million).
The strategic alliance involves the launch of a joint venture in Shanghai with a total investment of RMB2.94 billion (approximately US$420 million) and a joint venture in Hong Kong with a total investment of HK$360 million (approximately US$46 million). Ping An Group and Shionogi’s respective subsidiaries will hold a 49% and 51% voting stake in each joint venture, respectively. The strategic alliance also involves the transfer of certain wholly owned subsidiaries of Shionogi to the joint ventures. The joint ventures will leverage both parties’ strengths and advantages and will establish a research and development platform, an innovative pharmaceutical manufacturing and quality control system, and a sales and distribution platform with a view to enhance Ping An Group’s health and medical care service in China. They will also become Shionogi’s drug development centers to develop and distribute new drugs and expand in China and throughout Asia.
Ping An Group is a world-leading technology-powered retail financial services group focusing on the provision of financial and healthcare services through an integrated financial services platform. Shionogi is a leading research-driven pharmaceutical company headquartered in Japan.
The Morrison & Foerster team was led by Hong Kong partner Thomas Chou, co-chair of the Asia Private Equity practice and head of the China M&A Group. Key members included Tokyo Corporate partner Hisateru Goda, Tokyo Technology Transactions partner Masato Hayakawa, Shanghai Technology Transactions partner Chuan Sun, and Hong Kong Private Equity and M&A associate Julia Lee.
Hong Kong Private Equity and M&A associate Katrina Tsoi and trainee solicitor Brian Ho; Tokyo Corporate associates Shotaro Maruyama and Kae Kitanaka; Tokyo Technology Transactions associate Ryota Nishikawa and Shanghai Technology Transactions associate Sarah Wang made significant contributions to the deal.